Sunshine Act: Notice of Public Meeting, 14157 [2019-07123]
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Federal Register / Vol. 84, No. 68 / Tuesday, April 9, 2019 / Notices
RAILROAD RETIREMENT BOARD
Sunshine Act: Notice of Public Meeting
Notice is hereby given that the
Railroad Retirement Board will hold a
meeting on April 16, 2019, 10:00 a.m. at
the Board’s meeting room on the 8th
Floor of its headquarters building, 844
North Rush Street, Chicago, Illinois
60611. The agenda for this meeting
follows:
Portion open to the public:
1. Impact of the SCOTUS Wisconsin
Central decision and any necessary
Board Action.
The person to contact for more
information is Stephanie Hillyard,
Secretary to the Board, Phone No. 312–
751–4920.
For the Board.
Dated: April 5, 2019.
Stephanie Hillyard,
Secretary to the Board.
[FR Doc. 2019–07123 Filed 4–5–19; 4:15 pm]
BILLING CODE 7905–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–217, OMB Control No.
3235–0241]
Submission for OMB Review;
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Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
amozie on DSK9F9SC42PROD with NOTICES
Extension:
Rule 206(4)–2
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension and
revision of the previously approved
collection of information discussed
below.
The title for the collection of
information is ‘‘Rule 206(4)–2 under the
Investment Advisers Act of 1940—
Custody of Funds or Securities of
Clients by Investment Advisers.’’ Rule
206(4)–2 (17 CFR 275.206(4)–2) under
the Investment Advisers Act of 1940 (15
U.S.C. 80b–1 et seq.) governs the
custody of funds or securities of clients
by Commission-registered investment
advisers. Rule 206(4)–2 requires each
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18:15 Apr 08, 2019
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registered investment adviser that has
custody of client funds or securities to
maintain those client funds or securities
with a broker-dealer, bank or other
‘‘qualified custodian.’’ 1 The rule
requires the adviser to promptly notify
clients as to the place and manner of
custody, after opening an account for
the client and following any changes.2
If an adviser sends account statements
to its clients, it must insert a legend in
the notice and in subsequent account
statements sent to those clients urging
them to compare the account statements
from the custodian with those from the
adviser.3 The adviser also must have a
reasonable basis, after due inquiry, for
believing that the qualified custodian
maintaining client funds and securities
sends account statements directly to the
advisory clients, and undergo an annual
surprise examination by an independent
public accountant to verify client assets
pursuant to a written agreement with
the accountant that specifies certain
duties.4 Unless client assets are
maintained by an independent
custodian (i.e., a custodian that is not
the adviser itself or a related person),
the adviser also is required to obtain or
receive a report of the internal controls
relating to the custody of those assets
from an independent public accountant
that is registered with and subject to
regular inspection by the Public
Company Accounting Oversight Board
(‘‘PCAOB’’).5
The rule exempts advisers from the
rule with respect to clients that are
registered investment companies.
Advisers to limited partnerships,
limited liability companies and other
pooled investment vehicles are excepted
from the account statement delivery and
deemed to comply with the annual
surprise examination requirement if the
limited partnerships, limited liability
companies or pooled investment
vehicles are subject to annual audit by
an independent public accountant
registered with, and subject to regular
inspection by the PCAOB, and the
audited financial statements are
distributed to investors in the pools.6
The rule also provides an exception to
the surprise examination requirement
for advisers that have custody because
they have authority to deduct advisory
fees from client accounts and advisers
1 Rule
206(4)–2(a)(1).
206(4)–2(a)(2).
3 Rule 206(4)–2(a)(2).
4 Rule 206(4)–2(a)(3), (4).
5 Rule 206(4)–2(a)(6).
6 Rule 206(4)–2(b)(4).
2 Rule
PO 00000
Frm 00075
Fmt 4703
that have custody solely because a
related person holds the adviser’s client
assets and the related person is
operationally independent of the
adviser.7
Advisory clients use this information
to confirm proper handling of their
accounts. The Commission’s staff uses
the information obtained through these
collections in its enforcement,
regulatory and examination programs.
Without the information collected under
the rule, the Commission would be less
efficient and effective in its programs
and clients would not have information
valuable for monitoring an adviser’s
handling of their accounts.
The respondents to this information
collection are investment advisers
registered with the Commission and
have custody of clients’ funds or
securities. We estimate that 7,216
advisers would be subject to the
information collection burden under the
rule 206(4)–2. The number of responses
under rule 206(4)–2 will vary
considerably depending on the number
of clients for which an adviser has
custody of funds or securities, and the
number of investors in pooled
investment vehicles that the adviser
manages. It is estimated that the average
number of responses annually for each
respondent would be 6,830, and an
average time of 0.00500 hour per
response. The annual aggregate burden
for all respondents to the requirements
of rule 206(4)–2 is estimated to be
246,532 hours.
This collection of information is
found at 17 CFR 275.206(4)–2 and is
mandatory. Responses to the collection
of information are not kept confidential.
Commission-registered investment
advisers are required to maintain and
preserve certain information required
under rule 206(4)–2 for five years. The
long-term retention of these records is
necessary for the Commission’s
examination program to ascertain
compliance with the Investment
Advisers Act.
The estimated average burden hours
are made solely for the purposes of
Paperwork Reduction Act and are not
derived from a comprehensive or even
representative survey or study of the
cost of Commission rules and forms. An
agency may not conduct or sponsor, and
a person is not required to respond to,
a collection of information unless it
displays a currently valid control
number.
7 Rule
Sfmt 4703
14157
E:\FR\FM\09APN1.SGM
206(4)–2(b)(3), (b)(6).
09APN1
Agencies
[Federal Register Volume 84, Number 68 (Tuesday, April 9, 2019)]
[Notices]
[Page 14157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07123]
[[Page 14157]]
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RAILROAD RETIREMENT BOARD
Sunshine Act: Notice of Public Meeting
Notice is hereby given that the Railroad Retirement Board will hold
a meeting on April 16, 2019, 10:00 a.m. at the Board's meeting room on
the 8th Floor of its headquarters building, 844 North Rush Street,
Chicago, Illinois 60611. The agenda for this meeting follows:
Portion open to the public:
1. Impact of the SCOTUS Wisconsin Central decision and any
necessary Board Action.
The person to contact for more information is Stephanie Hillyard,
Secretary to the Board, Phone No. 312-751-4920.
For the Board.
Dated: April 5, 2019.
Stephanie Hillyard,
Secretary to the Board.
[FR Doc. 2019-07123 Filed 4-5-19; 4:15 pm]
BILLING CODE 7905-01-P